Correlation Between Iteris and Westell Technologies
Can any of the company-specific risk be diversified away by investing in both Iteris and Westell Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Iteris and Westell Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteris Inc and Westell Technologies, you can compare the effects of market volatilities on Iteris and Westell Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Iteris with a short position of Westell Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and Westell Technologies.
Diversification Opportunities for Iteris and Westell Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iteris and Westell is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and Westell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westell Technologies and Iteris is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Iteris Inc are associated (or correlated) with Westell Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westell Technologies has no effect on the direction of Iteris i.e., Iteris and Westell Technologies go up and down completely randomly.
Pair Corralation between Iteris and Westell Technologies
If you would invest 21,830 in Iteris Inc on August 27, 2024 and sell it today you would earn a total of 4,819 from holding Iteris Inc or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 10.0% |
| Values | Daily Returns |
Iteris Inc vs. Westell Technologies
Performance |
| Timeline |
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Westell Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Iteris and Westell Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteris and Westell Technologies
The main advantage of trading using opposite Iteris and Westell Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris position performs unexpectedly, Westell Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Westell Technologies will offset losses from the drop in Westell Technologies' long position.| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
| Westell Technologies vs. KVH Industries | Westell Technologies vs. Telesat Corp | Westell Technologies vs. Mynaric AG ADR | Westell Technologies vs. Knowles Cor |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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